North Carolina Down Payment Assistance Programs

Payments Gateway - The North Carolina Housing Finance Agency got two amazing programs for First Time Home Buyers. These programs will be the Mortgage Credit Certificate as well as the deposit Assistance System.

You buy a home and December 1, 2009 and should you qualify for one of these programs, you can ALSO qualify for the $8,000 tax credit just enacted into law.

First, who's a First Time Home Buyer? A First Time Home Buyer is someone who hasn't owned a home in the past three years. That is precisely the same qualifying definition for the $8,000 tax credit.

A Mortgage Credit Certificate (MCC) is a federal tax credit to help home buyers with low and average incomes. All home owners can claim an itemized deduction for mortgage interest. The MCC takes this a step farther. An MCC “reduces your tax liability based on a percentage of the mortgage interest which you pay.

Should you are eligible for the MCC, it is possible to claim 20% of the interest you pay on your own mortgage as a credit on your federal income taxes. You are able to save as much as $2,000 on your taxes.

You may be able to join this with the $8,000 tax credit should you qualify for 2009, for the MCC. This may reduce a buyer's tax liability .

Who Qualifies for an MCC?

Household income is defined as the “gross income of the mortgagor and any individual expected to live in the home who's 18 years old or older.”

The income and house price limitations that apply in Orange, Durham and Chatham Counties are listed below.

MCC Income Limitations 1 Individual $61,500 2 Men $61,500 3 Men $70,500 4 Persons $70,500

MCC Sales Cost Limits New House $220,000 Existing House $210,000

Who Qualifies for Down Payment Assistance?

Home buyers that want help with their deposit and closing prices may be able to get down payment assistance - or, in other words, interest-free, deferred second mortgages up to $8,000. The purchaser just has to pay and the load would pay up to .

This program has stricter income limitations than the MCC plan outlined above. Like the MCC program, it might be used together with all the new $8,000 tax credit on house purchases between January 1, 2009 and December 1, 2009. The deposit assistance, however, can't be used together together with the MCC. This really is an either or situation.

House price limitations that apply in Durham Orange and Chatham Counties and the income are listed below.

Down Payment Assistance Income Limitations

1 Individual $39,950 2 Men $45,650 3 Men $51,350 4 Men $57,050

Down Payment Assistance Sales Price Limits New House $210,000 Existing Residence $210,000